PNB Holdings Prepares for Listing
PNB Holdings, the real estate branch of Lucio Tan’s aviation and spirits empire, is moving closer to its long-anticipated market listing. The company has recently registered shares with the Securities and Exchange Commission.
Backed by three significant properties valued at around P80.9 billion (about $1.4 billion), PNB Holdings will pursue a listing that aims to facilitate share trading without the need for new capital, according to a statement from LT Group, Tan’s primary company and major stakeholder in PNB.
Jonathan Labelas, managing director of Manila-based consulting firm eMBMS, expressed that PNB Holdings wants to reveal the hidden potential of its prime real estate. “This isn’t about improving PNB’s capital adequacy ratio; the bank is already in robust shape,” he noted.
The properties held by PNB Holdings include an office complex near Manila Bay, a building on Ayala Avenue—Makati’s main commercial artery—and some vacant land adjacent to Makati’s central business district. The assets are recorded at a book value of P46.8 billion, suggesting an unrealized gain of P34 billion based on current market valuation.
“I think the market value will hold up,” Labelas commented, alluding to ongoing redevelopment activities in the vicinity of these properties.
Besides acknowledging the properties’ value, Labelas highlighted that the listing also aims to enhance market visibility and create a foundation for PNB Holdings’ future expansion through partnerships, and potentially real estate investment trusts (REITs).
The plan for this listing on the Philippine Stock Exchange traces back to PNB’s earlier commitment in 2021 to distribute 59% of PNB Holdings to shareholders as part of real estate dividends. A total of 293.4 million shares will be allocated, translating to a dividend of 0.16 shares for each PNB share held.
The dividend date is set for October 2024, though an announcement in August indicated that only 1,823 shareholders received the dividend, a small fraction of the 36,362 eligible shareholders.
Lucio Tan, the chairman of the LT Group, has diverse interests ranging from airlines to beverages and real estate. With a net worth estimated at $3.3 billion, he ranks among the wealthiest individuals in the Philippines, according to real-time Forbes data.
